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MUFG analysts expected the FOMC meeting to underline substantial stimulus and change its quantitative easing guidance, keeping the dollar on a weaker footing. They forecast about a 5% DXY depreciation by end-2021 and noted the 10-year real yield near -100 basis points.
Expectations of negative real yields and dollar weakness support commodity prices in dollar terms, which lowers the import cost of feed ingredients for overseas buyers.
octaafrica.netDec 11, 2020After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
